Most of us are so used to apps and online services that we agree to their terms and conditions without even thinking about it. Living in a fast-paced world, we’re looking to make that purchase, play that game or reserve that ride without any delay to think about the potential consequences. 

In a tragic case, a New Jersey family learned how accepting terms and conditions can sharply limit your legal rights even if the agreement was presented in conjunction with an entirely different transaction. Georgia and John McGinty of Princeton were seriously injured in a March 2022 car crash while riding in an Uber. Seeking compensation for the harm they had suffered, they attempted to file a personal injury lawsuit against the rideshare service giant. 

However, a New Jersey appellate court ruled that their claims could not be heard by a jury because of a mandatory arbitration clause that applied to their Uber account. When reviewing the circumstances, it turned out that the McGintys’ 12-year-old daughter had accepted the terms and conditions when ordering a pizza through the Uber Eats service. Despite the fact that a minor had completed the agreement in connection with a food delivery rather than a rideshare trip, the McGintys are forced to have their claim decided in arbitration, pending appeal to the state’s Supreme Court.

As a response to the McGInty case and similar situations, a New Jersey state Senate panel has unanimously advanced a bill that would place significant restrictions on the types of contracts private companies can enforce against their customers. The proposed legislation aims to protect consumers from unknowingly surrendering important legal rights—particularly the right to sue in court—through obscure or overly complex contract terms buried in the fine print of digital agreements.

There are various ways that laws barring deceptive practices in online terms and conditions could be applied. Clear notice of arbitration or waiver clauses might be mandated so that a user could not reasonably say they were not warned about limits on their right to sue. Penalties could also be imposed on companies that employ deceptive or unfair contractual practices to avoid accountability.

Though there might be strong support for the bill, it is not law yet. Even if the measure is eventually passed, Uber and Lyft users likely will still have to agree to mandatory arbitration clauses, though they might be stated a little more clearly and prominently. If you were hurt in an accident while a rideshare passenger, you should consult with a qualified attorney about your rights and options. 

Hollander, Strelzik, Pasculli, Vandenberg, Hontz & Associates, LLC, pursues compensation for New Jersey clients in rideshare accident cases and other types of personal injury claims. Please call 973-737-1023 or contact us online for a consultation. Our offices are in Newton and Succasunna.